Looming US default may exert indirect effect on Russia

Russian Finance Minister Anton Siluanov, in turn, expressed confidence that possible default in the U.S. would not affect Russia’s economy

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Photo AP/Carolyn Kaster

MOSCOW, October 16 (Itar-Tass) -The U.S. government’s possible default on its bonds will have an indirect effect on Russia’s financial system, Ksenia Yudayeva, first deputy chairwoman of the Central Bank of Russia, told reporters on Wednesday.

Unlike European countries that have many funds investing their money into U.S. bonds, Russia has practically no such structures, she said, adding that in the event of default in the United States Russia would feel only indirect effects. Moreover, the Central Bank of Russia has a wide range of mechanisms to support liquidity of the banking sector and foreign currency market.

Yudayeva found it difficult to forecast a scale of possible influence on Russia’s monetary and foreign currency markets, if the U.S. fails to agree on raising debt ceiling.

Russian Finance Minister Anton Siluanov, in turn, expressed confidence that possible default in the U.S. would not affect Russia’s economy.

“There are no short-dated bonds in Russia,” he told journalists earlier in the day. “In the event of default we will feel no consequences. But I hope that the sides will come to agreement.”